Daily News Egypt interviewed vice president of Tabarak Holding Bassem El Shorbany to talk about the company’s investments and new projects.
Have there been developments in the company’s projects?
Tabark Holding is investing in two projects. The first is the Ninety Avenue Project and the second is the Capital East project.
The Capital East project aims to provide middle-class housing units, with a specific focus on women. The project’s marketing campaign was launched in the last month.
The project consists of 1,300 units, with each unit on an area of 88 to 160sqm. The housing development will also include a beauty centre, entertainment, an amusement park, a swimming pool, and other services.
The units’ prices differ as do the payment plans for each of the units. The project will be conducted in three phases; the first phase will be delivered with all services in 2018.
The Ninety Avenue project is executed by important real estate developers such as CRC, Dora, Amaar, Yasser Al-Beltagy, WTEG, Schnider Electric, and Hany Saad Design. Total investment is estimated to stand at approximately EGP 7bn.
Tabarak has developed about 60% of the Ninety Avenue project on an area of 200,000sqm; 40,000sqm have been allocated to retail development while 15,000sqm have been allocated for administration buildings, and 1,300sqm for departments.
Tabarak was keen to reduce the area allocated to buildings in order to increase the area allocated for landscaping.
Tabarak announced plans to list the company on the Egyptian Exchange (EGX) in order to increase its capital. Are these plans still forthcoming?
We are working on plan but we will not be listed before the end of the year. We are currently putting together Tabarak’s portfolio. This should be done by the coming quarter.
What is your assessment of the recent price of land offered in government calls to tender?
The prices are very high and I think they will continue to rise. Recent bids per metre of land reached EGP 4000, which is very high. That will lead to an increase in residential unit prices. The most expensive areas in the last bid were in the New Cairo region.
What about the cooperation with government in building 500,000 housing units?
We have yet to reach a final agreement with the government; however, our real estate division is still negotiating the initiative.
What are the challenges that face the company in developing your projects?
The challenges that face real estate developers are the lack of qualified manpower and the equipment needed for the real estate market, besides the long waiting period for government procedures.
What are promising areas for real estate investment companies?
There is an opportunity for real estate investment companies to expand into governorates throughout Cairo, as they have not garnered the focus of most developers. Most developers focus on only two governorates.
Can you name some of the governorates in which Tabarak has interest?
Mansoura city has potential, as do Sohag and Assuit in Upper Egypt. I would add Ras Sedr city as well.
What is the size of company’s investments?
The company’s current investments are around EGP 8bn, in the sectors of real estate, industry and agriculture.
How much has the company spent in project expenditures since the beginning of the year?
In the Ninety Avenue Project, as I mentioned, the project’s total investment cost amounts to EGP 7bn. The first phase was offered for sale and was met with great success in sales. We plan to offer the rest of the first phase during the current year.
Furthermore, the first part of the last phase of the Capital East project began at the end of 2015 and the sales rate has been good in the short period since. The project is expected to be completed in 2018, with a total investment cost of about EGP 600m.
In the Fantasia Resort and Hotel project, we completed the landscape of the first phase and we are working on the second phase. We expect to complete the second phase in 2017 and then begin the third phase. The project’s cost until now amounts to EGP 750m.
The company will offer part of the Jannat Agricultural Project along the Cairo-Alexandria Desert Road. Jannat is located 30 minutes from Lebanon Square at the 62nd kilometre market on the desert road, on an area of 420 acres. Total investment for the first two phases of the project amounts to EGP 400m.
The company is also working on the Aaly El Riyadh Compound project in Saudi Arabia. The idea behind the project is transfer the idea of Egyptian architecture to international locales. Total investment in the project amounts to about EGP 250m.
What is Tabarak’s expected growth in the current year?
The company expects a growth rate of 60%. Tabarak achieved 25% growth in 2015 compared to 2014.
What is the size of the company’s land portfolio, including its target for 2016?
The company’s portfolio of lands reached about 7m sqm, along with 2.2m sqm along the North Coast which the company contracted to implement a real estate project on an area of 450 acres in the North Coast.
The company expects to start construction on the project next September after the completion of procedures and land registry. Total investment in the project amounts to EGP 1.5bn and the time period of implementation is expected to be over three years.
The company plans to build chalets on 80% of the project’s land. It will also construct a shopping mall.
The company plans to submit new bids for land in New Cairo City, as part of its quest to increase the size of its land portfolio.